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Chinese manufacturing reaches six-month high, official figures show

Manufacturing activity in China improved for the fourth straight month in June, rising to levels not seen in six months, according to official government data out on Tuesday.

The National Bureau of Statistics (NBS) said that the official manufacturing purchasing managers' index (PMI) edged higher from 50.8 in May to 51.0 last month.

This was in line with the consensus forecast and the highest reading since December 2013.

Any figure about 50 indicates an expansion in activity.

Looking at the sub-indices, the new orders index improved from 52.3 to 52.8, its highest since September 2013, which was the peak for new orders in the previous cycle, according to Danske Bank. Export orders rose from 49.2 to 50.3.

Meanwhile, the finished goods inventory index edged higher from 47.1 to 47.3 but still remained in contraction under the key-50 mark, suggesting that inventories are still being cut.

"Hence, the new order-inventory balance continues to improve, suggesting continued improvement in the coming months," said Flemming Neilsen, Senior Analyst at Danske Bank.

In a separate release, the final revision of Markit/HSBC's non-official manufacturing figures showed that the PMI for June grew to 50.7 from 49.4 in May.

This was its highest level since November 2013, but was slightly lower than the initial estimate of 50.8. Analysts had expected no revision.

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